The decision, issued by the Abu Dhabi Real Estate Centre (ADREC) on June 2, takes effect immediately and will remain in place until further notice.
Under the directive, all tenancy contract renewals will be processed at a 0% increase, effectively barring landlords from raising rents at the time of renewal during the period.
ADREC also stated that any new tenancy contract for a previously rented unit must be offered at the same rental value as the preceding agreement, effectively keeping rents unchanged from the last signed lease.
The announcement comes amid sustained demand in Abu Dhabi’s property market and elevated living costs in parts of the UAE capital. The emirate’s rental framework had previously allowed annual rent increases of up to 5%, subject to regulatory conditions and notice requirements.
All tenancy contracts in Abu Dhabi are registered through the Tawtheeq system, which is used to formalise agreements and enforce compliance with rental regulations.
It remains unclear whether the measure extends to all free zones or separately regulated communities within the emirate.
Impact
The rent freeze is expected to provide immediate relief for tenants by removing annual rent escalations at the time of renewal, improving predictability in household budgeting and easing pressure from rising living costs.
For businesses, the measure is likely to support greater stability in occupancy costs, aiding medium-term planning and operational certainty.
According to Pyush Lohia, Managing Director, Lohia Worldspace, a premium real estate development firm in India, the policy marks a significant shift in rental market stability.
He said that by limiting upward rent adjustments and restricting premiums on vacant units, the measure could help moderate recent increases in the affordable housing segment, while also strengthening tenant retention and improving long-term market stability.
Market observers note that the broader impact will depend on the duration of the freeze and how uniformly it is implemented across different property jurisdictions in Abu Dhabi.
First Published: Jun 3, 2026 3:28 PM IST
